Introduction

This case describes the challenges faced by the Bata Management in the wake of changing market trends in the form of increased competition from the local players as well as the constantly increasing threat of Chinese imports. Bata had traditionally targeted the lower middle and middle class segments of the society and was now considering changes in its strategy to be able to survive in the market. The MD of Bata was considering the efforts necessary to realign Bata Pakistan’s manufacturing, outsourcing, distribution and brand strategy in the light of increased local competition and Chinese imports.

Strengths
1. Brand Image 2. Reasonable quality at low or reasonable price 3. Diversity with ranges in running, training, court, basketball, football and Outdoor 4. 5. 6. 7. 8. 9. Footwear for the entire family Financialy Strong Conveniently accessible outlets in various parts of the country Targetting all income segments Provide training for managers and employees Nationwide retail network

S5. T1) Customers can be satisfied with Bata’s quality and reasonable prices. Innovative Products 6. O1)
ST Strategies Increase Customization (S2. Economic Threat 6. T6)
Evaluation of Three Strategic Options for Bata
Manufacturing: Bata can use its regional expertise e.g. Bata can also stay in its International markets that are benefitial to compete with potential competitors. New mediums for advertisements Threats 1. Changing in consumer preferences
E-Market Development (S1. (S2.
Distribution:
. Customer Dissatisfaction 2. S8. Capturing Market where no other potential competitor exists 5. Price wars with competitors 3. in Malaysia for rubber based shoes and in China for artificial leather shoes and use their expertise and economies of scale to be able to meet the needs of the product lines for which they had some sort of a cost disadvantage. T1)
WT Strategies Related Diversification (W4. T1) Innovative Products (W4.Markets 4. Political Instability 5. Competitors 4.

because having that can damage their chances of maintaining a proper image for their brand. because now a day’s people are more quality consious instead of price consious.
Bata should build a strong relationship with its customers so that they come with their families for the best quality shoes.
.
For wholesale channel.
Respond to competition from Chinese imported shoes and other local shoes seller
According to my analysis Chinese imported shoes and other local shoes seller are not a major threat for Bata.
Brands:
Bata should target to middle and upper class. It would enhance its brand equity.Bata should give more importance to Company-owned stores. It should focus on their successful brands like Bubble gummers. They know very well about the quality of Bata as compare to these Chinese and local shoes. Bata should continue to grow in uuper middle class. they should come out of that and stop having their footwear at the Wholesale shops. Bata should not focus on fashionable footwear because Bata is well known for its functional footwear for its reliability. It should arrange more training programmes for employees to have better quality according to consumer preferences. In which it can control and managae its operations easily. because lower class now prefer to purchase Chinese and local shoes. Should provide better products in terms of quality as well as price. They can get profits from franshises but with assurance that employees working there are also trained otherwise it can hurt the image of Bata.

because of the growth in numbers of people belonging to these segments and also because of the rising incomes of its target customers. ➢ Reduce Selling and Administration expenses to get more Net income. Management should reduce its debts to reduce the financial charges. ➢ The service standards should be strictly monitored and hence an experience fit will be provided to the customers and these customers for this will be willing to pay a bit of premium because of Bata’s brand and hence the competition undercutting Bata on price would no longer be that big a threat.
. ➢ Internet is a broad medium so they should also improve e-business. ➢ It will need to focus on marketing itself as an outlet meeting all basic needs of the families in its target market segment ➢ Should provide consistent quality service to its customers so that customers can associate the same experience with whichever outlet they visit of Bata.➢ Should exit from the lower end segment and focus more on the middle and upper middle class of the society. ➢ Bata debt to equity ratio is 3. ➢ Renewed brand image will enable Bata to earn premium at the upper middle end of the market will aid the achievement of the financial goals. ➢ Footwear industry is highly fashionable industry. which means almost 75% are debts. hence Bata must improve the efficiency of product development in order to bring new design and style.51.

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